Enforcement of cross-border cargo regulations has significantly increased during the Trump administration, causing delays and financial burdens that deter trade, according to industry experts. As the U.S. implements more tariffs, customs procedures have become stricter, resulting in heightened scrutiny and penalties for shipments traveling across the border.
Breanna Leininger, overseeing U.S. operations at Pacific Customs Brokers in Vancouver, described the substantial changes in customs requirements. The requests for documentation on shipped goods have multiplied tenfold compared to previous years, with customs now conducting more thorough inspections on a daily basis.
Importers are now required to provide extensive paperwork, including labor and manufacturing records, to demonstrate compliance with product classifications and trade agreements. The criteria for proof and the tariffed items are constantly evolving, making it challenging for businesses to keep up with the changing demands.
Data from U.S. Customs and Border Protection reveals a 26% increase in audits this year compared to 2024. These audits assess importers’ adherence to tariff classifications, customs valuations, and trade agreements like the Canada-United States-Mexico Agreement, resulting in a significant rise in trade penalties collected by customs authorities.
The surge in enforcement actions coincides with an escalating trade dispute between Canada and the U.S., with both countries imposing additional tariffs in recent weeks. These border disruptions and increased document requirements add extra costs and complexity to cross-border trade, discouraging some businesses from engaging in international commerce.
Alan Dewar, the executive vice president at GHY, a customs brokerage in Winnipeg, highlighted the financial implications of these stringent measures, including storage costs, delays, spoilage, and service charges incurred when goods are not delivered as expected.
Despite the challenges, some businesses have managed to navigate the evolving trade landscape, while others have found the regulatory environment too daunting to continue operations. U.S. Customs and Border Protection emphasized the importance of importers providing accurate and complete information to comply with regulations and mitigate risks associated with international trade.
